Finding out the fair market value is not impossible but can be very time consuming and quite a tacky process. There is no set formula to calculate the fair market value of any property, thus many factors come into play. There are a few notable methods that can be used and we will help you through the process. The fair market value of your property will be used by your insurance agent, government for tax and yourself for a resale. So knowing the value of your house is indeed very vital.
Rely on others’ ValuationA very simple method is to rely on valuation from other sources like the government valuation of your property on the property deed. Or if you are getting an insurance coverage for your home, you can use their details. However, most of the time these two methods prove to be less effective because such valuations tend to be outdated. If the valuations were done many years ago its best to get your own valuation for your home.
The market approach is a very commonly used method to value properties, mostly houses. Compare the selling prices of properties in your area. Inquire of their land space too. It would be very easy to determine the value of your home if you are aware of your land space as well. That way a few calculations can land you the market value of your land per Sq. ft. This is usually the method used by most single family homes to calculate their property values. Most real estate agents use the market approach to fix the asking price for homes. House valuers too use data from previous sales in the area to fix the closest possible estimate the value of the property. Visit http://propertyvaluation.melbourne/commercial-property-valuations/
An independent valuer Melbourne is a professional in the field. And can help you determine the correct value of your home. It is best to hire independent valuers if the data on other homes similar to yours are not available. It is important to know the correct value of your home, especially if you are planning on putting it up for sale.
Cost of rebuilding your house
Another way to determine the value of your house is to look for the selling price of an empty slot of land in your neighbourhood. Then divide the price by the land space to get the price per Sq. Ft. Multiply your land space in Sq. Ft. with price per Sq. Ft. to get the price of your land. Next calculate the cost of rebuilding your house with any exclusive amendments you have made to the house that would be beneficial to anyone buying the place. Then add these two findings together to the closest possible value of your home.